Nigeria at risk of an energy crisis as strike halts oil institutions and the Dangote refinery

Major oil institutions in Nigeria, including the Nigerian National Petroleum Company Limited (NNPC), the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), have been shut down following a strike set about by the Petroleum and Natural Gas Senior Staff Association of Nigeria on Monday.

• Major oil unions in Nigeria have initiated a strike, halting the operations of nationwide petroleum institutions.
• The strike focused on disputes between unions and the Dangote Petroleum Refinery involving workforce layoffs and employment practices.
• The refinery justifies its restructuring as a protective measure against operational threats, despite union allegations.
• The shutdown extends to critical oil sector facilities, including the NNPCL, with complete compliance reported.

On Sunday, reports indicated that the Dangote Petroleum Refinery's gas and crude supplies were halted by the oil union PENGASSAN in retaliation to the widespread dismissals of union employees.

They alleged that foreigners, primarily from India, have displaced local workers in the $20 billion refinery.

This is hardly the refinery’s first run-in with union workers in Nigeria's downstream oil sector, as a few weeks back, the Nigeria Union of Petroleum and Natural Gas (NUPENG) Workers threatened to go on a strike.

The strike was also based on allegations, where NUPENG accused the Dangote Refinery of trying to operate outside of union jurisdiction.

As per the current strike, PENGASSAN’s grievance with the Dangote Refinery is based on what it described as "misinformation and propaganda" concerning the recent debacle with the company’s layoffs.

The Refinery responded to news about the termination of personnel contracts, stating that the move was part of a larger restructure aimed at safeguarding operations following "recent cases of sabotage" in numerous units of the facility.

In a statement issued Friday, September 26, the refinery's management stated that the decision was made to protect the Refinery in the wake of occurrences posing "serious risks to human life and safety."

“We remain vigilant to our internal systems and vulnerabilities to ensure the long-term stability of this strategic national asset,” the statement read. “It is imperative to protect the refinery for the benefit of Nigerians, our partners across Africa, and the thousands of people whose livelihoods depend on it.”

The company disclosed that over 3,000 Nigerians continue to work actively at the refinery, with only a very small number of staff affected by the restructuring.

However, the Union asserted that the alleged wrongful disengagement of around 800 unionised employees remained unaddressed.

PENGASSAN’s strike marks the first major disruption at the refinery since it began operations earlier this year, raising concerns over stability in the country’s refining sector.

The union also instructed members who were assigned to different field areas to start a 24-hour prayer vigil at 6:00 am.

PENGASSAN said the Dangote Refinery plant has been “100 percent shut down,” while the fertilizer plant’s second train has also been halted, with the first train operating at 60 percent capacity.

Consequence of the current oil strike on unions

According to a recent update from the Punch newspaper, employees at NUPRC seemed to be stranded outside the organization's headquarters in the capital city of Abuja.

According to the union's strike instruction, no employees were permitted admission, as confirmed by the on-duty security personnel.

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As employees cooperated fully with the strike action, activities at the NMDPRA offices in the bustling Central Business District were also completely suspended.

PENGASSAN's Chairman in NMDPRA, Tony Iziogba, verified the situation to The PUNCH, adding that the labor group had attained "100 per cent compliance," thereby limiting worker and guest access.

At the NNPCL and other key agencies, he noted, his colleagues had likewise ensured complete compliance.

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